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Key Points

India's core sector expansion slowed sharply to just 0.5% in April, marking the weakest performance in eight months. While cement, coal and steel showed growth, refinery products and fertilisers dragged down the overall index. The data suggests potential moderation in broader industrial activity. Economists warn this tepid performance may reflect in April's IIP numbers. The cumulative growth for FY25 so far stands at 4.5%, below previous year's levels.

Key Points: India's core sector growth slows to 8-month low at 0.5% in April

  • Core sector growth hits 8-month low at 0.5%
  • Refinery output drops 4.5% while coal rises 3.5%
  • Cement and steel show positive growth trends
  • Cumulative FY25 growth stands at 4.5%
3 min read

India's core industries output grows 0.5% in April, lowest in 8 months

India's eight core industries grew just 0.5% in April 2025, the slowest pace in eight months, with refinery products and fertilisers dragging growth.

"The performance of the core sector deteriorated significantly in April 2025 - Aditi Nayar, ICRA Chief Economist"

New Delhi, May 20

The combined Index of Eight Core Industries (ICI) increased by 0.5 per cent (provisional) in April 2025 as compared to the index in April 2024, the commerce ministry said in a statement Tuesday.

According to reports, it is the lowest in 8 months.

The production of cement, coal, steel, electricity and natural gas recorded positive growth in April 2025.

The Index of Eight Core Industries (ICI) is a key economic indicator in India, measuring the combined and individual performance of eight core industries.

The eight core industries are coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity. The Eight Core Industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).

The final growth rate of the Index of Eight Core Industries for January 2025 was observed at 5.1 per cent. The cumulative growth rate of ICI from April to March, 2024-25 is 4.5 per cent (provisional) as compared to the corresponding period of last year.

The summary of the Index of Eight Core Industries is given below:

Coal - Coal production (weight: 10.33 per cent) increased by 3.5 per cent in April 2025 over April 2024. Its cumulative index increased by 5.1 per cent during April to March, 2024-25 over the corresponding period of the previous year.

Crude Oil - Crude Oil production (weight: 8.98 per cent) declined by 2.8 per cent in April 2025 over April 2024. Its cumulative index declined by 2.2 per cent during April to March, 2024-25 over the corresponding period of the previous year.

Natural Gas - Natural Gas production (weight: 6.88 per cent) increased by 0.4 per cent in April 2025 over April 2024. Its cumulative index declined by 1.2 per cent during April to March, 2024-25 over the corresponding period of the previous year.

Petroleum Refinery Products - Petroleum Refinery production (weight: 28.04 per cent) declined by 4.5 per cent in April 2025 over April, 2024. Its cumulative index increased by 2.8 per cent during April to March, 2024-25 over the corresponding period of the previous year.

Fertilisers - Fertiliser production (weight: 2.63 per cent) declined by 4.2 per cent in April 2025 over April 2024. Its cumulative index increased by 2.9 per cent during April to March, 2024-25 over the corresponding period of the previous year.

Steel - Steel production (weight: 17.92 per cent) increased by 3.0 per cent in April 2025 over April 2024. Its cumulative index increased by 6.9 per cent during April to March, 2024-25 over the corresponding period of the previous year.

Cement - Cement production (weight: 5.37 per cent) increased by 6.7 per cent in April 2025 over April 2024. Its cumulative index increased by 6.3 per cent during April to March, 2024-25 over the corresponding period of the previous year.

Electricity - Electricity generation (weight: 19.85 per cent) increased by 1.0 per cent in April 2025 over April 2024. Its cumulative index increased by 5.2 per cent during April to March, 2024-25 over the corresponding period of the previous year.

Aditi Nayar, Chief Economist, Head - Research and Outreach, ICRA Ltd, "The performance of the core sector deteriorated significantly in April 2025, with the YoY growth slumping to an 8-month low of 0.5 per cent in the month from the upward revised 4.6 per cent in March 2025. The deceleration was broad-based, led by six of the eight sectors barring coal and natural gas."

"Based on the tepid rise in the core sector and the performance of the other available high-frequency indicators, ICRA expects the IIP growth to moderate sharply to 1.0 per cent in April 2025. The healthy growth in non-oil exports may provide an upside, unless the same represents round-tripping of some imports," Nayar added.

- ANI

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Reader Comments

R
Rahul K.
This slowdown is concerning but not unexpected given global economic conditions. At least steel and cement sectors are showing decent growth - that's good for infrastructure projects. Hope the new policies can boost refinery and fertiliser production soon. 🇮🇳
P
Priya M.
The 4.5% decline in petroleum products is worrying! With rising fuel prices, this will directly hit common people's pockets. Government should focus more on energy security and reducing import dependence. #MakeInIndia
A
Amit S.
Mixed bag results... Cement growth at 6.7% is excellent news for real estate sector! But crude oil decline for consecutive months shows we need better exploration policies. Maybe time to revisit ONGC's strategies?
N
Neha T.
As someone working in manufacturing, I see this slowdown firsthand. The cumulative 4.5% growth is still better than many countries, but we can do better! Need more focus on ease of doing business at ground level. 🏭
S
Sanjay V.
The fertiliser sector decline is bad news for farmers ahead of kharif season. Hope the government takes corrective measures soon. Food security depends on this!
K
Kavita R.
While the numbers look disappointing, let's remember the cumulative growth is still positive. The economy goes through ups and downs. What matters is the long-term trajectory. Stay positive, India! ✨

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